Avis Budget Group, Inc. (CAR) Stock: Is This Service Stock Worth Your Attention?

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Avis Budget Group, Inc. (CAR) is headed down in the market in today’s trading session. The stock, one that is focused in the service industry, is currently priced at $27.21 after a move down of -6.91% so far today. When it comes to service companies, there are quite a few factors that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines associated with CAR:

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Aug-14-19 03:16PM Avis Budget Rental Car Funding (AESOP) LLC, Series 2019-3 — Moody’s assigns provisional ratings to Avis Budget Series 2019-3 rental car ABS
02:00AM Skift Global Forum Preview: Avis Tackles Digital Innovation Through Partnerships
Aug-13-19 09:15AM Better Than Last Monday, but Still Down Over 1%
Aug-10-19 02:49PM Edited Transcript of CAR earnings conference call or presentation 6-Aug-19 12:30pm GMT
Aug-08-19 10:57AM Avis Budget (CAR) Q2 Earnings & Revenues Surpass Estimates

However, when making a decision with regard to investing, prospective investors should look at far more than just news, this is especially the case in the ever highly complex service industry. Here’s what’s happening with Avis Budget Group, Inc..

Recent Movement From CAR

Although a decline in a single session, like the fall that we’re seeing from Avis Budget Group, Inc. may make some investors unhappy, that by itself should not be the basis of a decision to, or not to, buy a company’s stock. It is always smart to take a look at trends experienced by the stock just a single session. When it comes to CAR, below are the trends that we have seen:

  • Past 7 Days – Over the last seven days, CAR has generated a change in value in the amount of -12.82%.
  • Monthly – The monthly returns from Avis Budget Group, Inc. comes to -25.47%.
  • Past Three Months – Over the last 3 months, the company has generated a ROI that comes to -17.42%
  • Past Six Months – Over the past six months, we’ve seen a change that amounts to -1.13% from the company.
  • Year To Date – Since the open of this year CAR has generated a ROI of 21.04%.
  • Full Year – Lastly, throughout the last year, investors have seen movement that comes to -20.16% out of CAR. Over this period, the stock has traded at a high of -26.99% and a low price of 25.80%.

Ratios To Watch

Digging into a few key ratios having to do with a stock can give traders a look of how dangerous and/or potentially profitable a pick might be. Below are some of the important ratios to look at when looking at CAR.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is going to fall. Throughout the sector, strong service stocks can carry a lower short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, in regard to Avis Budget Group, Inc., the stock’s short ratio comes to 6.42.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure whether or not a company can pay its debts when they come due based on current assets or quick assets. do have strong quick and current ratios. When it comes to CAR, the quick and current ratios add up to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this particular case, the book to share value ratio equates to 4.95.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio comes to 6.94.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CAR, here’s what we’re seeing:

Institutions own 0 of the company. Institutional interest has moved by -0.12% over the past three months. When it comes to insiders, those who are close to the company currently own 1.30% percent of CAR shares. Institutions have seen ownership changes of an accumulative 414.67% over the last three months.

How Analysts Feel About Avis Budget Group, Inc.

While it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their opinions when validating your own when it comes to making investment decisions in the service sector. Below you’ll find the recent moves that we have seen from analysts with regard to CAR.

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Feb-11-19 Upgrade Goldman Sell → Buy $35
Jul-30-18 Upgrade Northcoast Neutral → Buy
Jun-26-18 Resumed Morgan Stanley Underweight $30
Apr-11-18 Downgrade Northcoast Buy → Neutral
Feb-14-18 Downgrade Goldman Neutral → Sell $33

Financial Performance

What have ween seen from CAR in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts expect that the company will report earnings per diluted share that totals up to be 4.32, with 3.69 being reported in the next financial report. Although this information is not based on earnings, because we’re talking about Wall St. analysts, CAR is currently graded as a 2.10 when rated on a scale from 1 to 5 on which 1 is the worst average Wall St. analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the past half decade, Avis Budget Group, Inc. has created a movement in sales that works out to be 2.80%. EPS over the last half decade have seen movement in the amount of 70.30%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in the human world, CAR has seen a earnings change by 154.40%. The company has also seen movement in regard to sales volume that comes to a total of 0.40%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 76.92M shares of Avis Budget Group, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CAR has a float of 74.31M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CAR, the short percent of the float is 9.17%.

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